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2016 (5) TMI 621 - AT - Income TaxDouble taxation - addition in the regular assessment for the asst. year 1999-2000 and once again in the block assessment period from 1989-1990 to 11.2.1999 - Held that - The amount of ₹ 17,50,008/- is already taxed in the asst. year 1999-2000 vide assessment order dated 22.3.2005 passed u/s.143(3) read with sec.263 of the Act. This order of the assessment was subject matter before the CIT(Appeals). The CIT(Appeals) vide order dated 31.12.2012 observed that the assessment order giving effect to the order of the CIT u/s. 263 cannot be appealed against before him and he dismissed the appeal of the assessee. Thus, it means that an amount of ₹ 17,50,008/- was already considered for addition in regular assessment year 1999-2000 consequent to the order passed u/s.263 of the Act. Being so, the same amount cannot be considered in the block assessment which amounts to double addition. Accordingly, this addition is deleted. - Decided in favour of assessee
Issues:
1. Validity of block assessment order of the Assessing Officer. 2. Double taxation issue regarding addition of ?17,50,008 in regular assessment for the assessment year 1999-2000 and for the block period 1989-90 to 11.02.1999. 3. Levy of interest under section 158BFA of the Act. Issue 1: Validity of block assessment order of the Assessing Officer The appeal raised concerns about the validity of the block assessment order of the Assessing Officer. Initially, the ld. AR did not press this ground during the hearing, leading to its dismissal. The subsequent issue revolved around the addition of ?17,50,008 in both regular assessment and block period, raising concerns about potential double taxation. The Tribunal highlighted the background of a search under section 132 of the Act and subsequent assessment proceedings. The assessee contended that the film business loss was not considered during the block assessment, leading to a series of observations and appeals. The Tribunal emphasized the wide appellate powers of the Commissioner (Appeals) and cited relevant case laws to support the assessee's argument. It directed the CIT(Appeals) to adjudicate the issue in accordance with the law. Issue 2: Double Taxation Issue The issue of double taxation regarding the addition of ?17,50,008 in both regular assessment and block period was thoroughly examined. The Tribunal noted that the amount was already taxed in the assessment year 1999-2000 and was considered for addition in the block period, leading to potential double taxation. Citing the judgment of the Bombay High Court, the CIT(Appeals) dismissed the ground of appeal. However, the Tribunal concluded that since the amount was already considered in the regular assessment, it could not be included in the block assessment, thereby deleting the addition to avoid double taxation. Issue 3: Levy of Interest Regarding the levy of interest under section 158BFA of the Act, the Tribunal highlighted that it is mandatory and consequential in nature, requiring computation accordingly. The appeal was partly allowed for statistical purposes, with the Tribunal providing a detailed analysis and reasoning for each issue raised. The judgment reaffirmed the legal principles governing appellate powers and the prevention of double taxation, ensuring a thorough examination of the case and a just outcome. This detailed analysis of the judgment provides insights into the legal intricacies involved in the issues raised and the Tribunal's meticulous examination of each aspect to deliver a comprehensive and fair decision.
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